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Google AdWords Min CPC, Max CPC and Avg CPC clarified
Recently we posted about a common misconception regarding Minimum CPC (cost-per-click) and how it is determined. Today we’d like to expand on the theme of CPC, and define the other CPC types that you’ll see in your AdWords account.
Minimum CPC - also referred to as Min CPC or Minimum CPC bid:
As discussed in our previous post, a minimum cost-per-click (CPC) bid is assigned to each keyword in your account based on its quality (as measured by its Quality Score). The minimum bid is typically the least amount you can pay per click in order for your keyword to show ads. It is important to note that minimum CPC is set by the AdWords system, and not by the advertiser.
Related posts
4 Tips to Squeeze Every Cent of Profit From Your Pay-Per-Click Marketing
I love pay-per-click marketing! There are few forms of online advertising that offer such complete control over where you spend your advertising dollars.
But despite the ability to control Google Adwords and Yahoo! Search Marketing gives you over your ads — how much you spend on them, where and when they appear, etc. — I’m constantly meeting savvy Internet marketers who are wasting tons of unnecessary money on their pay-per-click campaigns because they are either…
a) Making “okay” money from their campaigns and too lazy to do the work to make them really successful
– or –
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The Death of Google AdWords - Are AdWords dead?
Just got the email from Joel Comm.. Very interesting stuff. Enjoy
What if I told you could pick the brain of a former Google employee
for $100.
Would you seize the opportunity?
Frankly, I can’t imagine anyone with even the slightest curiousity
not taking advantage of that offer.
What if I told you that this person was on the original Google
AdWords team?
I don’t know about you, but I’d pay over $1000 to hear what this
person has to say!
Well, I’ve got some bad news and some good news…
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AdWords Clicks, Conversions, and Christmas
Online advertisers have noticed that CPCs tend to increase during the holiday season and have asked us why. We turned to Hal Varian, Google’s Chief Economist, for an explanation:
Many advertisers track their average cost-per-click (CPC), but what really matters for the bottom line is the average cost-per-acquisition (CPA): how much you have to spend on advertising to make a sale. The third factor to watch is the conversion rate, which is defined as conversions (sales) per click.
Note that these numbers are neatly tied together by the convenient formula:
CPA = CPC/Conversion rate = (cost/click)/(conversions
/click).
Related posts
A Common Misconception Revisited
Today, we’d like to revisit a common misconception, about which we receive quite a few questions. In the first part of the post, we will very briefly cover the most important facts and in the second we’ll take a more detailed look at four related questions.
The common misconception: Many advertisers believe that if they have no competitors for a keyword, their minimum cost-per-click (CPC) will automatically be lowered by the AdWords system to $0.01, the lowest possible CPC.
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What Does 400,000,000 Mean?
People know that Google receives a boat load of traffic every day, but did you know that they receive over 400,000,000 searches every single day (even more during the holiday season). This is an astronomical amount of TRAFFIC! But what does this mean to the average person and how do we make sense of all of this?
Well, of those 400 million searches every day, approximately 70% of them are under search terms that do not have any competition. NONE…not a single ad! This means that there is a huge opportunity for people to monetize and take advantage of these niches.  The other 30% that are being advertised under are making companies and people like you a considerable amount of money.